Pie 123

1. Externaleconomiesof eggshellarisewhenthecostperwhole A. risesasthe laborgrowslarger. B. f altogethersastheindustrygrowslargerrisesasthe norm firmgrowslarger. C. fall downsastheaveragefirmgrowslarger. D. remainsconstant. E. no(prenominal)oftheabove. resultB 2. Internaleconomiesofscalearisewhenthecostperunit A. risesastheindustrygrowslarger. B. fallsastheindustrygrowslarger. C. risesastheaveragefirmgrowslarger. D. fallsastheaveragefirmgrowslarger. E. Noneoftheabove. consequenceD 3. Externaleconomiesofscale A. aybeassociatedwitha short warlikeindustry. B. stomachnotbeassociatedwithaperfectlycompetitiveindustry. C. guidesto offspringinonehugemonopoly. D. tendstoresultinlarge geltforeachfirm. E. Noneoftheabove. resultA 4. Internaleconomiesofscale A. whitethornbeassociatedwithaperfectlycompetitiveindustry. B. cannotbeassociatedwithaperfectlycompetitiveindustry. C. argonassociatedonlywithsophisticatedproductssuchasaircraft. D. cannotformthe themeforinternationaltrade. E. Noneofthe above. serve upB 5. Amonopolisticfirm A. ansellasmuchasitwantsforany hurtitdeterminesinthe commercialise. B. cannotdeterminetheprice,whichisdeterminedbyconsumerdemand. C. willneversellaproductwhosedemandisinelasticatthe beatsold. D. cannotselladditionalquantityunlessitraisesthepriceoneachunit. E. Noneoftheabove. resolveC 7 6. Monopolisticcompetitionisassociatedwith A. cut-throatpricecompetition. B. productdifferentiation. C. explicitconsiderationatfirmlevelofthefeedback piecesofotherfirms pricingdecisions. D. loftyprofitmargins. E. Noneoftheabove. AnswerB 29.Twocountriesengagedintradeinproductswithnoscaleeconomies,produced downstairsconditionsofperfectcompetition, be presumabletobeengagedin A. monopolisticcompetition. B. inter-industrytrade. C. intra-industrytrade. D. Heckscher-Ohlintrade. E. Noneoftheabove. AnswerB 19. Amonopolyfirmengagedininternationaltradewill A. equateaveragetolocal be. B. equatemarginalcostswithforeignmarginalrevenues. C. equatemarginalcostswiththe mel utt erestpricethemarketwillbear. D. equatemarginalcostswithmarginalrevenuesinboth nationalandin foreignmarkets. E. Noneoftheabove.AnswerD 9. Wherethereareeconomiesofscale,thescaleofproductionpossibleina unpolished isconstrainedby A. thesizeofthecountry. B. thesizeofthetradingpartnerscountry. C. thesizeofthe municipalmarket. D. thesizeofthe national optimistic(p)theforeignmarket. E. Noneoftheabove. AnswerD Brown field , Green field 21. Afirminmonopolisticcompetition A. earns lordlymonopolyprofitsbecauseeachsellsadifferentiated product. B. earnspositiveoligopolyprofitsbecauseeachfirmsellsadifferentiated product.C. earnszerostintingprofitsbecauseitisinperfectlyorpurecompetition. D. earnszerostintingprofitsbecauseoffreeentry. E. Noneoftheabove. AnswerD 16. Internationaltradebasedonscaleeconomiesislikelytobeassociatedwith A. Ricardian relative gain. B. relative degreeadvantageassociatedwithHeckscher-Ohlinfactor- proportions. C. comparativeadvantagebasedonqualityandservi ce. D. comparativeadvantagebasedondiminishingreturns. E. Noneoftheabove. AnswerE Ch7- . Theeffective accountof protectionmeasures A. thetrueadvalorumvalueofa responsibility. B. thequotaequivalentvalueofaduty. C. theefficiencywithwhichthetariffis collectedatthecustomhouse. D. theprotectiongivenbythetariffto domestic helpvalueadded. E. Noneoftheabove. AnswerD 1. Specifictariffsare A. effecttaxesstatedinspecificlegalstatutes. B. here and nowtaxescalculatedasafixedchargeforeachunitof meaningedgoods. C. importtaxescalculatedasa carve upofthevalueoftheimportedgoods. D. thesameasimportquotas. E. Noneoftheabove. AnswerB . Advaloremtariffsare A. importtaxesstatedinadsinindustrypublications. B. importtaxescalculatedasafixedchargeforeachunitofimportedgoods. A. importtaxescalculatedasafractionofthevalueoftheimportedgoods. B. thesameasimportquotas C. Noneoftheabove. AnswerC Themainredistributioneffectofatariffisthetransferofincomefrom A. domesticproducerstodomesticbuyers. B. domesticbuyerstod omesticproducers. C. domesticproducerstodomesticgovernment. D. domesticgovernmenttodomesticconsumers. E. Noneoftheabove. AnswerB 21.Whichofthefol first-class honours degreeingpoliciespermitsaspecifiedquantityofgoodstobe importedatonetariffrateandahighertariffratetoimportsabovethisquantity? A. Importtariff B. Voluntaryexports restriction C. Tariffquota D. Advalorumtariff E. Noneoftheabove. AnswerC 22. Shouldthehomecountrybelargerelativetoitstradepartners,itsimpositionof atariffonimportswouldleadtoanincreaseindomesticwelfareifthetermsof thetraderectangleexceedthesumofthe A. revenueeffectplusredistributioneffect. B. protectiveeffectplusrevenueeffect. C. consumptioneffectplusredistributioneffect.D. protectivedistortioneffectplusconsumptiondistortioneffect. E. Noneoftheabove. AnswerD An import quota Is continuously more costly to a country than an import tariff. Has the same effects on welfare as an import tariff. Generates rents that might go to foreigners. Is always less costly to a c ountry than an import tariff. - - ? ? -Ch9- 27. Theimperfect gravidmarketjustificationforinfantindustrypromotion A. Assumesthatnewindustrieswilltendto paylowprofits. B.Assumesthatinfantindustrieswill shortmature. C. Assumesthatinfantindustrieswillbeinproductsofcomparative advantage. D. Assumesthatbankscanallocateresourcesefficiently. E. Noneoftheabove. AnswerA 2. Sophisticatedtheoreticalargumentssupportingimport-substitutionpolicies include A. costoftradeeffects. B. Scaleeconomyarguments. C. Learningcurveconsiderations. D. Theproblemofappropriability. E. Noneoftheabove. AnswerD 14. Which industrial enterprisepolicyusedbydevelopingcountriesplaces fiercenesson thecomparativeadvantageprincipleasaguidetoresourceallocation? A. exportpromotion.B. Importsubstitution. C. Internationalcommodityagreements. D. Infant sedulousnesspromotion. E. Noneoftheabove. AnswerA 1. Theinfantindustryargumentwasanimportanttheoreticalbasisfor A. Neo-colonialist surmisalofinternationalexploitation. B. Importsubstitutingindustrialization. C. Historiographyoftheindustrial renewinginWesternEurope. D. East-Asianmiracle. E. Noneoftheabove. AnswerB 6. Thewagedifferentialtheorywhicharguedthatshiftingresourcesfromagribusiness tomanufacturingentailedpositivesocialbenefitsimpliedthat A. Freetradepolicieswould conjure upcompetitiveness. B.Freetradepolicieswouldpromote frugalgrowthforbothstaticand dynamicreasons. C. Protectionismwaslikelytoleadtoeconomicstagnation. D. Protectionismandimportsubstitutionwaslikelytopromoteeconomic growth. AnswerD 12. Whichtradestrategyhavedevelopingcountriesusedtorestrictimportsof manufacturedgoodssothatthedomesticmarketispreservedforhomeproducers, who therefromcantakeovermarketsalreadyestablishedinthecountry? A. Internationalcommodityagreement. B. exportingpromotion. C. Multilateralcontract. D. Importsubstitution. E. Noneoftheabove. AnswerD 18. ImportsubstitutionpoliciesmakeuseofA. Tariffsthatdiscouragegoodsfromenteringacountry. B. Quotasappliedtogoodsthat areshippedabroad. C. achievementsubsidiesgrantedtoindustrieswithcomparativeadvantage. D. Taxbreaksgrantedtoindustrieswithcomparativeadvantage. E. Noneoftheabove. AnswerA 25. Theinfantindustryargumentisthat A. Comparativeadvantageisirrelevanttoeconomicgrowth B. growingcountrieshaveacomparativeadvantageinagriculturalgoods. C. Developingcountrieshaveacomparativeadvantageinmanufacturing. D. Developingcountrieshaveapotentialcomparativeadvantagein manufacturing. E. Noneoftheabove.AnswerD 26. Theinfantindustryargumentcallsforactivegovernment inquirement A. preciselyifthegovernmentforecastsareaccurate. B. Onlyifsomemarketfailurecanbeidentified. C. Onlyiftheindustryisnotonealreadydominatedbyindustrialcountries. D. Onlyiftheindustryhasahighvalueadded. E. Noneoftheabove. AnswerB 30. Importsubstitutionpolicieshaveovertimetendedtoinvolveallbutthefollowing A. Overlappingimportquotas. B. Exchangecontrols. C. Domesticcontentrules. D. Simpletariffs. E. Multipleexchangerateschemes. AnswerD 35. The HPAE(High workAsianEconomies)countriesA. Haveallconsistentlysupportfreetradepolicies. B. Haveallconsistently kept up(p)import-substitutionpolicies. C. Haveallconsistentlymaintainednon-biasedefficientfreecapitalmarkets . D. Haveallmaintainedopennesstointernationaltrade. E. Noneoftheabove. AnswerD ================================ch11========================== 1. Theworldseconomiescanbe shared outinto quadmaincategoriesharmonizeto theiryearlyper-capitaincomelevelslow-income,lowermiddle-income, speeding middle-incomeandhigh-incomeeconomies. What course of instructionwouldPakistanand Indiafallunder? A.Low-income B. Uppermiddle-income C. High-income D. turn downmiddle-income E. PakistanandIndiafallbetweenlower-middleandupper-middle AnswerA 2. Whilemanydevelopingcountrieshavereformedtheireconomiesinorderto imitatethesuccessofthesuccessfulindustrialeconomies,theprocessremains unelaboratedandmostdevelopingcountriestendtobecharacterizedbyallofthe followingexcept A. Seigniorage B. Controlofc apitalmovementsbylimitingforeignexchangeproceeding connectedwithtradeinassets. C. Useof born(p)resourcesoragriculturalcommoditiesasanimportantshare ofexports.D. Aworsejobofdirectingsavingstowardtheirmostefficientinvestment uses. E. Reduced corruptnessandpovertyduetolimitedundergroundmarkets. AnswerE 4. Comparedwithindustrializedeconomies,mostdevelopingcountriesarepoorin thefactorsofproductionessentialto sophisticatedindustryThesefactorsare A. capitaland goodlabor B. capitalandunskilledlabor C. fertile sphereandunskilledlabor D. fertilelandandskilledlabor E. waterandcapital AnswerA 5. Themainfactorsthatdiscourageinvestmentincapitalandskillsindeveloping countriesare A. olitical imbalance,insecure qualityrights B. politicalinstability,insecurepropertyrights,misguidedeconomicpolicies C. politicalinstability,misguidedeconomicpolicies D. politicalinstability E. insecurepropertyrights,misguidedeconomicpolicies AnswerB 6. Theworldseconomiescanbedividedintofourmaincategoriesaccordingto their one-yearper-capitaincomelevelslow-income,lowermiddle-income,upper middle-incomeandhigh-incomeeconomies. Whatcategorywouldsub-Saharan Africafallunder? A. Low-income B. Uppermiddle-income C. High-income D. overthrowmiddle-income E.Sub-SaharanAfricafallsbetweenlower-middleandupper-middle AnswerA 7. Theworldseconomiescanbedividedintofourmaincategoriesaccordingto theirannualper-capitaincomelevelslow-income,lowermiddle-income,upper middle-incomeandhigh-incomeeconomies. Whatcategorywouldmainland Chinafallunder? A. Low-income B. Uppermiddle-income C. High-income D. Lowermiddle-income AnswerB 8. Theworldseconomiescanbedividedintofourmaincategoriesaccordingto theirannualper-capitaincomelevelslow-income,lowermiddle-income,upper middle-incomeandhigh-incomeeconomies.Whatcategorywouldthesmaller LatinAmericanandCaribbeancountriesfallunder? A. Low-income B. Uppermiddle-income C. High-income D. Lowermiddle-income E. SmallerLatinAmericanandCaribbeancountriesfallbetweenlowincome andlowermiddleincome AnswerD 9. Theworldseconomiescanbedividedintofourmaincategoriesaccordingto theirannualper-capitaincomelevelslow-income,lowermiddle-income,upper middle-incomeandhigh-incomeeconomies. WhatcategorywouldtheSaudi Arabiafallsunder? A. Low-income B.Uppermiddle-income C. High-income D. Lowermiddle-income E. SaudiArabiafallsbetweenlowincomeandlowermiddleincome economies AnswerB 10. Theworldseconomiescanbedividedintofourmaincategoriesaccordingto theirannualper-capitaincomelevelslow-income,lowermiddle-income,upper middle-incomeandhigh-incomeeconomies. WhatcategorywouldtheTurkey fallsunder? A. Low-income B. Uppermiddle-income C. High-income D. Lowermiddle-income E. TurkeyfallsbetweenlowincomeandlowermiddleincomeeconomiesAnswerB 11. Theworldseconomiescanbedividedintofourmaincategoriesaccordingto theirannualper-capitaincomelevelslow-income,lowermiddle-income,upper middle-incomeandhigh-incomeeconomies. WhatcategorywouldthePoland, Hungary,andtheCzechandSlovakRepublicsfallunder? A. Low-income B. Up permiddle-income C. High-income D. Lowermiddle-income E. Poland,Hungary,andtheCzechandSlovakRepublicsfallbetweenlow incomeandlowermiddleincomeeconomies AnswerBPie 1231. Externaleconomiesofscalearisewhenthecostperunit A. risesastheindustrygrowslarger. B. fallsastheindustrygrowslargerrisesastheaveragefirmgrowslarger. C. fallsastheaveragefirmgrowslarger. D. remainsconstant. E. Noneoftheabove. AnswerB 2. Internaleconomiesofscalearisewhenthecostperunit A. risesastheindustrygrowslarger. B. fallsastheindustrygrowslarger. C. risesastheaveragefirmgrowslarger. D. fallsastheaveragefirmgrowslarger. E. Noneoftheabove. AnswerD 3. Externaleconomiesofscale A. aybeassociatedwithaperfectlycompetitiveindustry. B. cannotbeassociatedwithaperfectlycompetitiveindustry. C. tendstoresultinonehugemonopoly. D. tendstoresultinlargeprofitsforeachfirm. E. Noneoftheabove. AnswerA 4. Internaleconomiesofscale A. maybeassociatedwithaperfectlycompetitiveindustry. B. cannotbeassociatedwithaperfectlycompetitiveindustry . C. areassociatedonlywithsophisticatedproductssuchasaircraft. D. cannotformthebasisforinternationaltrade. E. Noneoftheabove. AnswerB 5. Amonopolisticfirm A. ansellasmuchasitwantsforanypriceitdeterminesinthemarket. B. cannotdeterminetheprice,whichisdeterminedbyconsumerdemand. C. willneversellaproductwhosedemandisinelasticatthequantitysold. D. cannotselladditionalquantityunlessitraisesthepriceoneachunit. E. Noneoftheabove. AnswerC 7 6. Monopolisticcompetitionisassociatedwith A. cut-throatpricecompetition. B. productdifferentiation. C. explicitconsiderationatfirmlevelofthefeedbackeffectsofotherfirms pricingdecisions. D. highprofitmargins. E. Noneoftheabove. AnswerB 29.Twocountriesengagedintradeinproductswithnoscaleeconomies,produced underconditionsofperfectcompetition,arelikelytobeengagedin A. monopolisticcompetition. B. inter-industrytrade. C. intra-industrytrade. D. Heckscher-Ohlintrade. E. Noneoftheabove. AnswerB 19. Amonopolyfirmengagedininternationaltradewill A. equateaveragetolo calcosts. B. equatemarginalcostswithforeignmarginalrevenues. C. equatemarginalcostswiththehighestpricethemarketwillbear. D. equatemarginalcostswithmarginalrevenuesinbothdomesticandin foreignmarkets. E. Noneoftheabove.AnswerD 9. Wherethereareeconomiesofscale,thescaleofproductionpossibleinacountry isconstrainedby A. thesizeofthecountry. B. thesizeofthetradingpartnerscountry. C. thesizeofthedomesticmarket. D. thesizeofthedomesticplustheforeignmarket. E. Noneoftheabove. AnswerD Brown field , Green field 21. Afirminmonopolisticcompetition A. earnspositivemonopolyprofitsbecauseeachsellsadifferentiated product. B. earnspositiveoligopolyprofitsbecauseeachfirmsellsadifferentiated product.C. earnszeroeconomicprofitsbecauseitisinperfectlyorpurecompetition. D. earnszeroeconomicprofitsbecauseoffreeentry. E. Noneoftheabove. AnswerD 16. Internationaltradebasedonscaleeconomiesislikelytobeassociatedwith A. Ricardiancomparativeadvantage. B. comparativeadvantageassociatedwithHecksc her-Ohlinfactor- proportions. C. comparativeadvantagebasedonqualityandservice. D. comparativeadvantagebasedondiminishingreturns. E. Noneoftheabove. AnswerE Ch7- . Theeffectiverateofprotectionmeasures A. thetrueadvalorumvalueofatariff. B. thequotaequivalentvalueofatariff. C. theefficiencywithwhichthetariffiscollectedatthecustomhouse. D. theprotectiongivenbythetarifftodomesticvalueadded. E. Noneoftheabove. AnswerD 1. Specifictariffsare A. importtaxesstatedinspecificlegalstatutes. B. importtaxescalculatedasafixedchargeforeachunitofimportedgoods. C. importtaxescalculatedasafractionofthevalueoftheimportedgoods. D. thesameasimportquotas. E. Noneoftheabove. AnswerB . Advaloremtariffsare A. importtaxesstatedinadsinindustrypublications. B. importtaxescalculatedasafixedchargeforeachunitofimportedgoods. A. importtaxescalculatedasafractionofthevalueoftheimportedgoods. B. thesameasimportquotas C. Noneoftheabove. AnswerC Themainredistributioneffectofatariffisthetransferofincomefrom A. domesticpro ducerstodomesticbuyers. B. domesticbuyerstodomesticproducers. C. domesticproducerstodomesticgovernment. D. domesticgovernmenttodomesticconsumers. E. Noneoftheabove. AnswerB 21.Whichofthefollowingpoliciespermitsaspecifiedquantityofgoodstobe importedatonetariffrateandahighertariffratetoimportsabovethisquantity? A. Importtariff B. Voluntaryexportsrestraint C. Tariffquota D. Advalorumtariff E. Noneoftheabove. AnswerC 22. Shouldthehomecountrybelargerelativetoitstradepartners,itsimpositionof atariffonimportswouldleadtoanincreaseindomesticwelfareifthetermsof thetraderectangleexceedthesumofthe A. revenueeffectplusredistributioneffect. B. protectiveeffectplusrevenueeffect. C. consumptioneffectplusredistributioneffect.D. protectivedistortioneffectplusconsumptiondistortioneffect. E. Noneoftheabove. AnswerD An import quota Is always more costly to a country than an import tariff. Has the same effects on welfare as an import tariff. Generates rents that might go to foreigners. Is always less cos tly to a country than an import tariff. - - ? ? -Ch9- 27. Theimperfectcapitalmarketjustificationforinfantindustrypromotion A. Assumesthatnewindustrieswilltendtohavelowprofits. B.Assumesthatinfantindustrieswillsoonmature. C. Assumesthatinfantindustrieswillbeinproductsofcomparative advantage. D. Assumesthatbankscanallocateresourcesefficiently. E. Noneoftheabove. AnswerA 2. Sophisticatedtheoreticalargumentssupportingimport-substitutionpolicies include A. Termsoftradeeffects. B. Scaleeconomyarguments. C. Learningcurveconsiderations. D. Theproblemofappropriability. E. Noneoftheabove. AnswerD 14. Whichindustrializationpolicyusedbydevelopingcountriesplacesemphasison thecomparativeadvantageprincipleasaguidetoresourceallocation? A. Exportpromotion.B. Importsubstitution. C. Internationalcommodityagreements. D. InfantIndustrypromotion. E. Noneoftheabove. AnswerA 1. Theinfantindustryargumentwasanimportanttheoreticalbasisfor A. Neo-colonialisttheoryofinternationalexploitation. B. Import substitutingindustrialization. C. HistoriographyoftheindustrialrevolutioninWesternEurope. D. East-Asianmiracle. E. Noneoftheabove. AnswerB 6. Thewagedifferentialtheorywhicharguedthatshiftingresourcesfromagriculture tomanufacturingentailedpositivesocialbenefitsimpliedthat A. Freetradepolicieswouldpromotecompetitiveness. B.Freetradepolicieswouldpromoteeconomicgrowthforbothstaticand dynamicreasons. C. Protectionismwaslikelytoleadtoeconomicstagnation. D. Protectionismandimportsubstitutionwaslikelytopromoteeconomic growth. AnswerD 12. Whichtradestrategyhavedevelopingcountriesusedtorestrictimportsof manufacturedgoodssothatthedomesticmarketispreservedforhomeproducers, whothuscantakeovermarketsalreadyestablishedinthecountry? A. Internationalcommodityagreement. B. Exportpromotion. C. Multilateralcontract. D. Importsubstitution. E. Noneoftheabove. AnswerD 18. ImportsubstitutionpoliciesmakeuseofA. Tariffsthatdiscouragegoodsfromenteringacountry. B. Quotasappliedtogoodsthatareshippedabroad. C. P roductionsubsidiesgrantedtoindustrieswithcomparativeadvantage. D. Taxbreaksgrantedtoindustrieswithcomparativeadvantage. E. Noneoftheabove. AnswerA 25. Theinfantindustryargumentisthat A. Comparativeadvantageisirrelevanttoeconomicgrowth B. Developingcountrieshaveacomparativeadvantageinagriculturalgoods. C. Developingcountrieshaveacomparativeadvantageinmanufacturing. D. Developingcountrieshaveapotentialcomparativeadvantagein manufacturing. E. Noneoftheabove.AnswerD 26. Theinfantindustryargumentcallsforactivegovernmentinvolvement A. Onlyifthegovernmentforecastsareaccurate. B. Onlyifsomemarketfailurecanbeidentified. C. Onlyiftheindustryisnotonealreadydominatedbyindustrialcountries. D. Onlyiftheindustryhasahighvalueadded. E. Noneoftheabove. AnswerB 30. Importsubstitutionpolicieshaveovertimetendedtoinvolveallbutthefollowing A. Overlappingimportquotas. B. Exchangecontrols. C. Domesticcontentrules. D. Simpletariffs. E. Multipleexchangerateschemes. AnswerD 35. TheHPAE(HighPerformanceAsianEcon omies)countriesA. Haveallconsistentlysupportedfreetradepolicies. B. Haveallconsistentlymaintainedimport-substitutionpolicies. C. Haveallconsistentlymaintainednon-biasedefficientfreecapitalmarkets . D. Haveallmaintainedopennesstointernationaltrade. E. Noneoftheabove. AnswerD ================================ch11========================== 1. Theworldseconomiescanbedividedintofourmaincategoriesaccordingto theirannualper-capitaincomelevelslow-income,lowermiddle-income,upper middle-incomeandhigh-incomeeconomies. WhatcategorywouldPakistanand Indiafallunder? A.Low-income B. Uppermiddle-income C. High-income D. Lowermiddle-income E. PakistanandIndiafallbetweenlower-middleandupper-middle AnswerA 2. Whilemanydevelopingcountrieshavereformedtheireconomiesinorderto imitatethesuccessofthesuccessfulindustrialeconomies,theprocessremains incompleteandmostdevelopingcountriestendtobecharacterizedbyallofthe followingexcept A. Seigniorage B. Controlofcapitalmovementsbylimitingforeignexchangetransactions connectedwithtradeinassets. C. Useofnaturalresourcesoragriculturalcommoditiesasanimportantshare ofexports.D. Aworsejobofdirectingsavingstowardtheirmostefficientinvestment uses. E. Reducedcorruptionandpovertyduetolimitedundergroundmarkets. AnswerE 4. Comparedwithindustrializedeconomies,mostdevelopingcountriesarepoorin thefactorsofproductionessentialtomodernindustryThesefactorsare A. capitalandskilledlabor B. capitalandunskilledlabor C. fertilelandandunskilledlabor D. fertilelandandskilledlabor E. waterandcapital AnswerA 5. Themainfactorsthatdiscourageinvestmentincapitalandskillsindeveloping countriesare A. oliticalinstability,insecurepropertyrights B. politicalinstability,insecurepropertyrights,misguidedeconomicpolicies C. politicalinstability,misguidedeconomicpolicies D. politicalinstability E. insecurepropertyrights,misguidedeconomicpolicies AnswerB 6. Theworldseconomiescanbedividedintofourmaincategoriesaccordingto theirannualper-capitaincomelevelslow-income,lowermiddle-income,uppe r middle-incomeandhigh-incomeeconomies. Whatcategorywouldsub-Saharan Africafallunder? A. Low-income B. Uppermiddle-income C. High-income D. Lowermiddle-income E.Sub-SaharanAfricafallsbetweenlower-middleandupper-middle AnswerA 7. Theworldseconomiescanbedividedintofourmaincategoriesaccordingto theirannualper-capitaincomelevelslow-income,lowermiddle-income,upper middle-incomeandhigh-incomeeconomies. Whatcategorywouldmainland Chinafallunder? A. Low-income B. Uppermiddle-income C. High-income D. Lowermiddle-income AnswerB 8. Theworldseconomiescanbedividedintofourmaincategoriesaccordingto theirannualper-capitaincomelevelslow-income,lowermiddle-income,upper middle-incomeandhigh-incomeeconomies.Whatcategorywouldthesmaller LatinAmericanandCaribbeancountriesfallunder? A. Low-income B. Uppermiddle-income C. High-income D. Lowermiddle-income E. SmallerLatinAmericanandCaribbeancountriesfallbetweenlowincome andlowermiddleincome AnswerD 9. Theworldseconomiescanbedividedintofourmaincategoriesaccord ingto theirannualper-capitaincomelevelslow-income,lowermiddle-income,upper middle-incomeandhigh-incomeeconomies. WhatcategorywouldtheSaudi Arabiafallsunder? A. Low-income B.Uppermiddle-income C. High-income D. Lowermiddle-income E. SaudiArabiafallsbetweenlowincomeandlowermiddleincome economies AnswerB 10. Theworldseconomiescanbedividedintofourmaincategoriesaccordingto theirannualper-capitaincomelevelslow-income,lowermiddle-income,upper middle-incomeandhigh-incomeeconomies. WhatcategorywouldtheTurkey fallsunder? A. Low-income B. Uppermiddle-income C. High-income D. Lowermiddle-income E. TurkeyfallsbetweenlowincomeandlowermiddleincomeeconomiesAnswerB 11. Theworldseconomiescanbedividedintofourmaincategoriesaccordingto theirannualper-capitaincomelevelslow-income,lowermiddle-income,upper middle-incomeandhigh-incomeeconomies. WhatcategorywouldthePoland, Hungary,andtheCzechandSlovakRepublicsfallunder? A. Low-income B. Uppermiddle-income C. High-income D. Lowermiddle-income E. Poland,Hungar y,andtheCzechandSlovakRepublicsfallbetweenlow incomeandlowermiddleincomeeconomies AnswerB